Unemployment and wage gaps explained by new business cycle theory.
The article presents a theory explaining why economies go through periods of growth and recession. It suggests that businesses facing uncertainty in prices and costs can lead to unemployment and inefficiencies in the job market. This happens because companies have power over setting wages and can affect how many people they hire. The study shows that during economic ups and downs, the relationship between wages and employment changes, causing some people to be out of work even when they want a job.